what are your thoughts?- in general; and specifically for people in the data role(analysts) FYI- it survived the 2008 recession. moreover, came up with virtual call centres then to provide a bare minimum job to people laid off elsewhere and post recession, has more measures in accordance to the basel III norms to deal with tough times
Sorry but CapOne is in the auto loans sector, not housing loans(was closed long back). And it earns its 60-70% revenue out of the credit cards business. If e-commerce companies such as amazon, and retails stores such as Walmart, krogers, safeway etc. are seeing sales, it means people are paying which they do with a credit card. Yes comparitively there is a dip in credit card usage but there are payments being made by a credit card.
CapOne doesn’t make the majority of the money with swipe fees. They make the majority of the money from the horrendous interest. If too many people can’t pay their CC debt we are in trouble.
I don’t think we will see a layoffs. I agree with ELSD16 statement about CC usage, we might not get new colleagues and have to say good bye to a few contractors but other than that I think we are fine.
PVol was down some 30-60%. That can’t be good. And defaults are up ... the fundamentals right now aren’t good, but it could change at any moment. Stay the course.
Defaults are up at Capital One? For credit cards? Auto loans? Commercial loans?
That’s always a possibility with reorgs.
It’s can burst. As Cap One main business is mortgage & CC. Mortgage - housing market is in downturn coz of the virus and people are scared and won’t happen overnight until there is a vaccine. Cc - again no one is going out for dinner / party .
For CC an even bigger risk is the amount of people who will start defaulting. Cap One is very heavy in that space but banks still tend to be well capitalized... would not say that layoffs are unlikely though
Capital one is not in the mortgage business